(FORTUNE Magazine) – As America Online and Time Warner seek government approval for their merger, the long-running battle over access to the merged company's cable systems has obscured a simple truth: Everyone involved in the wrangling should benefit from open access.

The Federal Trade Commission told AOL and Time Warner (parent of FORTUNE's publisher) on Nov. 9 to sign an open-access agreement with a competing Internet service provider, such as Earthlink or Microsoft, before the merger closes. Such an agreement would enable an ISP to deliver high-speed Internet access over Time Warner Cable, the nation's second-largest cable system. "The FTC was very clear that they want to push this in our face," says an AOL executive.

That may sound like bad news for AOL/Time Warner, but it's not. Sure, the company will be forced to negotiate an open-access agreement under pressure. But ISPs should be eager to come to the table, figuring that the regulatory scrutiny allows them a chance to obtain favorable terms. The key issue is how the cable operators and ISPs will share subscription and advertising revenues.

The other reason this is good news for AOL/Time Warner comes down to simple math. Time Warner Cable has about 12.6 million subscribers. The idea is to open up these accounts to competition--and then force the rest of the cable industry to do the same. That way, AOL gets access to the 55.5 million cable homes controlled by others.

Until now, cable operators have refused to open up their pipes, a strategy analysts say is shortsighted. "Open access is good for consumers, large ISPs, and cable companies," says Morgan Stanley's Richard Bilotti. He says consumers will benefit from more choice, and the ISPs and cable operators will tap into new revenues. In other words, the FTC's dictates will send AOL/Time Warner kicking and screaming--all the way to the bank.

--Marc Gunther